A writer must “know and have an ever-present consciousness that this world is a world of fools and rogues… tormented with envy, consumed with vanity; selfish, false, cruel, cursed with illusions… He should free himself of all doctrines, theories, etiquettes, politics…” —Ambrose Bierce (1842-1914?). “The nobility of the writer's occupation lies in resisting oppression, thus in accepting isolation” —Albert Camus (1913-1960). “What are you gonna do” —Bertha Brown (1895-1987).

Tuesday, March 21, 2017

Illinois State Representative Grant Wehrli's Legislative Survey

Representative
Grant Wehrli:

I responded to your online legislative survey today, but your survey does not address other important
challenges of the state; nor does it offer the best solutions (or choices) for
the state's complicated issues. Most unfortunately, the survey asks constituents to
make simple choices to complex questions, questions that are constructed in a
way that demands no scrutiny in order to answer intelligently, and with no
understanding of the consequences for responding to an inane “yes/no/undecided” format.
Take for instance the following three questions in your legislative survey.

Question #1: “There are many important challenges facing our state.
Please rank the following in order of importance to you. –Creating Jobs,
-Reforming State Pensions, -Improving Education, -Rebuilding Infrastructure,
i.e. Roads and Bridges, -Reducing State Debt.”

The survey omits raising revenue in Illinois and re-amortizing the unfunded liability as
important choices. (Please read how to raise more state revenue and how to re-amortize
the flawed pension ramp again. Clickhere. I gaveyou some of that information when we met in your office on Monday, March 13).

Question #4: “Do you support moving away from state funded
pensions and towards an independent 401-k system?-Yes, -No, -Undecided.”

The survey omits the dire consequences of “moving away from state funded pensions and
towards an independent 401-K system.” Most constituents do not know about these consequences. According to the Teachers’ Retirement System of the State of
Illinois:

“The
Teachers’ Retirement System of the State of Illinois annually distributes
approximately $3.8 billion in pensions and benefits to men, women, and children
in every corner of the state, creating a sustained economic stimulus that helps
drive the economy in all 102 counties. This study is based on recurring
payments to retirees, survivors, and disability benefit recipients living in
Illinois. Lump-sum payments for refunds and death benefits are excluded from
the analysis since they do not provide a continuing source of income. Net,
rather than gross, benefits are used in this analysis because the net benefits
are what stimulate the state economy. The multipliers were produced by the
Regional Product Division of the U.S. Bureau of Economic Analysis.

“The
positive ripple effect of TRS benefits jumps by 46 percent to more than $5.584
billion in total economic activity throughout Illinois - new full-time jobs,
salaries earned, and new goods and services produced across the state.

“The
study, conducted by TRS using benefit statistics from February
2015 benefit payments, found that:

•
Eighty percent of the System’s 89,817 total benefit recipients live in Illinois.

•
The $3.8 billion in pensions and benefits paid to Illinois residents is 83
percent of the total pensions and benefits distributed by TRS annually. The
statewide economic impact of TRS pensions and benefits can be measured in real
terms:

TOTAL
OUTPUT - $5.584 BILLION

This
is the overall measure of economic activity in Illinois stemming from TRS
pensions and benefits. It includes all TRS payments, salaries earned in those
jobs, and increases in the state’s Gross Domestic Product.

JOBS
SUPPORTED – 41,725

This
is the total number of full-time jobs supported by the $3.821 billion in TRS
pensions and benefits pumped into the Illinois economy.

EARNINGS
CREATED - $1.562 BILLION

These
are the total salaries earned by persons employed in Illinois jobs that are
fueled by TRS benefit payments.

ILLINOIS
GDP VALUE - $3.272 BILLION

This
is the amount added to the Illinois Gross Domestic Product – the total value of
goods and services produced within Illinois – due to TRS pension and benefit
payments.

Furthermore,
according to TRS, “making newly-hired teachers pay into Social Security and allowing
them to be eligible for benefits would affect all current and retired teachers.
Illinois teachers have never been part of the Social Security system. Most
teachers rely almost solely on a TRS pension during retirement. Active teachers
[currently] contribute 9.0 percent of their paycheck to help fund TRS and
school districts contribute 0.58 percent of every teacher’s salary to the System.
Last year, all told, teachers contributed $917 million to TRS and school
districts contributed $155 million.

“For new teachers to become part of Social Security this scenario would mean a
mandatory 12.4 percent payroll deduction split evenly between the member and
the employer, which in the case of Illinois teachers is school districts and
state government. Teachers would still be required to contribute 9.0 percent of
salary to TRS.

“For school districts, the cost of teacher pensions would immediately rise by a
considerable amount. Instead of contributing 0.58 percent per new teacher,
every district would have to contribute 6.2 percent per teacher. It is
estimated that this increased cost would equal $41 million for Illinois school
districts in the first year and more than $2.4 billion over 10 years. Plus,
districts would still have to contribute 0.58 percent for each participant in
the current system.

“Finally, a 1999 study by the General Accounting Office found that adding
teachers and other public employers from around the country who are not
currently in Social Security would create, at best, a temporary surge in
revenue for Social Security. Over the long term, adding teachers to Social
Security would only increase the System’s total obligations and deepen the
long-term funding problem” (TRS).

Perhaps
the survey should also be asking your constituents whether the State of Illinois
ought to keep a constitutional promise: in other words, whether a politician can break a
constitutional contract with ANY citizen in Illinois if it suits a
politician’s advantage. Moreover, how about asking whether a politician should
continue to hurt the lives of people who were not responsible for the state’s
pension debt and lack of revenue? And how about asking whether so-called
pension reform, or the breaking of a constitutional contract, is moral and
legal, and whether it is right to ignore the State and U.S. Constitutions again
and again?

Question #6: “Most of Illinois’ neighboring states have in recent
years adopted ‘right to work’ laws. Would you support initiatives to make
Illinois a ‘right to work’ state to help us compete for jobs? –Yes, -No,
-Undecided.”

You
omitted what “right to work” laws would do to the State of Illinois. Besides
not helping the state “compete for jobs,” according to the Illinois Economic
Policy Institute and the University of Illinois:

“Efforts
to create local ‘right-to-work’ zones would have negative impacts on workers
and the economy in Illinois. The preponderance of evidence finds that worker
incomes are lower in economies with ‘right-to-work’ laws and that employment
effects are minimal at best.

“For
instance, average worker wages are $2.90 per hour (13 percent) higher in
Illinois than in ‘right-to-work’ Indiana, and Illinois added 14,000 more jobs
in 2014. At the same time, the unemployment rate in eastern Illinois counties
was lower than in ‘right-to-work’ counties across the Indiana border in December 2014.

“The
proposal for local ‘right-to-work’ zones is based on the assumption that high
union density hampers local economies. An analysis of the 102 counties in
Illinois, however, reveals that this presupposition is unfounded.

“Higher
county-level unionization rates within Illinois have no discernible impact on
employment growth, establishment openings growth, and average household income
growth. The evidence that unionization raises the unemployment rate in Illinois
is also weak. The claim that ‘right-to-work’ is an effective way to put people
to work is not supported by the evidence.

“Incorporating
estimates from previous policy research, economic impact analyses are performed
to determine the effect of adopting local ‘right-to-work’ laws in half of
Illinois’ counties, excluding Cook County. The models randomly select 51
counties to become ‘right-to-work’ zones and demonstrate the negative
consequences of the proposal. If half of the state’s counties (excluding Cook
County) became ‘right-to-work’ zones:

•
Total labor income would fall by $1.3 billion;

•
The economy would shrink by $1.5 billion;

•
State and local tax revenues would be reduced by $80 million;

•
Labor unions would experience a loss of 200,000 members;

•
Racial income inequality and gender income inequality would both increase; and

•
The number of workplace injuries and fatalities would rise.

“In
the seven integrated county economies with over 100,000 workers in Illinois,
predicted impacts are generally similar. If local ‘right-to-work’ zones were
only passed in the Chicago six-county area, the regional economy would
experience over 5,500 jobs lost and an economic contraction of $2.6
billion.

“Both
businesses and workers would relocate to other parts of the state with better
incomes and higher consumer demand. Similarly, local ‘right-to-work’ laws would
reduce total worker earnings by around $40 to $60 million in the
Champaign-Urbana, Quad Cities, Rockford, and Springfield-Decatur regions.

“Labor
income would also be predicted to decline by $16 million in the
Peoria-Bloomington community and by $104 million in the St. Louis region. Local
‘right-to-work’ zones would eradicate good middle-class jobs, replacing them
with low-wage employment openings and redistributing income from labor to
capital.

“Ultimately,
economic analysis reveals that local ‘right-to-work’ laws would reduce worker
earnings and decrease state and local tax revenues…

“Local
‘right-to-work’ zones would have overall negative impacts for Illinois workers.
First, workers earn more in fair-share collective bargaining economies. The
preponderance of evidence indicates that incomes are between 2 and 6 percent
lower in ‘right-to-work’ states. Compared to their counterparts in Indiana, a
neighboring ‘right-to-work’ state, Illinois workers earned 12.8 percent more in
average hourly wages in 2014.

“There
is also no evidence that higher unionization rates are associated with slower
income growth across Illinois. Moreover, if half of Illinois’ counties adopted
‘right-to-work’ regulations, total labor income in the economy would fall by
$1.3 billion throughout the state.

“Second,
the impact of ‘right-to-work’ laws on employment outcomes is mixed. Previous
estimates suggest a marginal 0.4 percentage point increase in jobs due to
‘right-to-work’ laws, but an effect of zero cannot conclusively be ruled
out.

“The
unemployment rate in western counties in ‘right-to-work’ Indiana is higher than
the unemployment rate in bordering eastern Illinois. Additionally, there is no
evidence that a higher county-level union membership rate leads to smaller
employment growth rate or establishment growth rate in Illinois counties. The
predicted impact of 51 counties becoming ‘right-to-work’ zones in Illinois is a
small 2,348-job increase in the state.

“A
definitive consequence of enacting local ‘right-to-work zones’ would be further
erosion of Illinois’ middle class. Labor unions would be expected to experience
a loss of 200,000 members if half of the state’s counties (excluding Cook
County) became ‘right-to-work’ areas.

“Since
unions provide greater income benefits for nonwhite and female workers than for
Caucasian males, this causal impact of ‘right-to-work’ would increase both
racial income inequality and gender income inequality.

“Good
middle-class jobs would be replaced by low-wage openings in ‘right-to-work’
counties, and employee income would be transferred to wealthy employers. As
result, total economic output in Illinois would fall by $1.5 billion and
cash-strapped local governments would experience a revenue loss of $80 million.

“Ultimately,
economic analysis reveals that local ‘right-to-work’ laws would encourage
free-riding, lower worker earnings, and reduce state and local tax revenues.
The likely result would be a weaker Illinois economy. Improving the entire
Illinois economy by increasing consumer demand, raising worker wages, and
making investments in education and public infrastructure are better policy prescriptions
with proven track records to help all counties in the state…”

3 comments:

(SPRINGFIELD, Ill.) –– The U.S. Court of Appeals for the Seventh Circuit on Tuesday, March 21 protected the right of Teamsters Local 916 to collect fair share fees and dismissed a challenge brought on by the Right-to-Work Coalition.

Circuit Judge Richard Posner dismissed the Coalition’s case filed on behalf of Local 916 fair share member Brian Trygg and another worker. Judge Posner declared that Brian Trygg already had a full and fair opportunity for his case to be heard and that “he missed his chance” to argue that fair share fees are now unconstitutional. The other plaintiff’s case was dismissed as the U.S. Court of Appeals cannot overrule the U.S. Supreme Court’s decision in Abood.

Previously, Trygg objected to paying fair share fees to Local 916 based on personal religious beliefs, though he was still afforded the benefits and protections of a Teamster contract, including a merit incentive bonus program with his employer. The plaintiffs, through the Right-to-Work Coalition, sued the Teamsters and AFSCME to avoid paying their representational fees.

A 1977 ruling by the U.S. Supreme Court has held for 40 years that unions are entitled to charge a fair share for work performed to represent individuals who choose not to become full dues-paying union members. Fair share fees are essential to negotiate and enforce a collective bargaining agreement, litigate grievances on behalf of members, file unfair labor practice charges and manage all other employment-related matters.

“The Seventh Circuit has very directly focused on the legal rights of parties before it. In particular, it recognized that parties are required to make all of their arguments in claims that they file and not try to split them into multiple suits,” said Attorney Carl Draper of Feldman Wasser on behalf of Local 916. “No one is allowed more than one bite at the apple and plaintiff Trygg had his day in court as this opinion affirms.”

“Any effort by Mr. Trygg or the Right-to-Work Coalition to pursue further appeals to the Supreme Court should recognize that there is now no viable claim against Local 916,” said Local 916 Legal Counsel JP Fyans.

“This decision applies well-established law that employees who get all of the benefits of union representation should pay their fair share of the costs of the union negotiations and representation,” Draper said. “It would be inherently unfair for unions to be legally required to negotiate fair wages and working conditions, and to provide representation on grievances and arbitration on behalf of employees who do not wish to share in that expense.”

The full decision by the U.S. Court of Appeals for the Seventh Circuit can be found here:

bit.ly/2mQgPgs.

Teamsters Local 916 proudly represents over 4,000 hardworking men and women throughout Illinois in the private and public sectors.

Sham survey from a sham statesman.There are ALEC workshops across the nation that teach the stooges who write this stuff for their legislative bosses. Grant Wehrli should be ashamed of himself for his hypocrisy and his attempt to fool his own constituents. That assumes that he is capable of feeling shame for his arrogance.

Teacher/Poet/Musician

Copyrights & Fair Use: This blog contains copyrighted material the use of which has not always been specifically authorized by the copyright owner. I am making such material available in my efforts to advance understanding of issues vital to a democracy. I believe this constitutes a “fair use” of any such copyrighted material as provided for in section 107 of the U.S. Copyright Law.

Persona

"I want everything to be explained to me or nothing. And reason is impotent when it hears this cry from the heart. The mind aroused by this insistence seeks and finds nothing but contradiction and nonsense" —Albert Camus (1913-1960).